West LA & Westwood Real Estate Market
HOME RENOVATIONS THAT ADD VALUE
Home renovations, repairs, and remodeling are common for homeowners. They help make the owners happier in the place they call home, give the home a better aesthetic, add more living space, or add features that did not originally come with the property. Some updates and renovations can add more value than others when it is time to sell or refinance. However, home renovations, such as a remolded and updated kitchen or bathroom, can get pricey. Owning a home is an investment, and renovations should also be treated as an investment. Therefore, it is essential to understand what kind of return on investment you can expect before beginning any home renovations. Below are some remodeling projects that typically deliver the highest return on investment.
1. Garage Door Replacement
A brand-new functioning garage door is at the top of the list when it comes to getting a high return on your investment. According to Remodeling Magazine, this project has an average return on investment of about 93.3%, one of the few projects to get you over ninety percent.
2. Stone Veneer
Stone veneer is a form of siding that looks like natural stone; it is a mixture of materials poured into a mold and is often used as siding in modern homes. It averages around 91.4% on return.
3. Minor Kitchen Remodel
A modern-looking and perfectly functional kitchen can boost the enjoyment of everyday activities like cooking, eating meals with family, and any entertainment events with friends. It also serves as a strong selling point to prospective home buyers who can, in turn, envision themselves sharing similar memories with their friends and families. If you are thinking ROI, keep the project modest, like countertops and cabinets, replace appliances with more energy-efficient models, and a new sink and flooring. Keeping it to these changes can recoup you up to 71.2%. More major kitchen remodels, like changing the layout or size, can return much closer to 53-57%.
Old, chipped, and worn siding can make the most modern, structurally sound home look old. When replacing the siding, most contractors recommend using either fiber-cement or vinyl. Fiber-cement siding can get you around a 68.3% return on investment, and vinyl can have a 67.2% return on investment.
Many say that windows are the eyes of the home. They are essential in keeping the heat and noise from coming into your home. You have some options for renovating windows, like vinyl and wood. Vinyl windows offer low-E (low-emissions) windows which are more modern and energy-efficient, and both can offer a return on investment between 65-68%.
Home Renovations as an Investment Opportunity
Renovating your home is an exciting investment opportunity because it kills two birds with one stone. First, you are making improvements to your home, which can help your quality of life depending on the work while simultaneously adding value to your home. Your home is an asset, and as an asset, it only makes sense to put money into it and keep it in the best condition possible.
When you’re looking to renovate your home, the investment must be worth all of the time and money put into making any changes. The Shilian Group has done extensive research on this topic, so they can help provide statistics that will give insight and advice about what type of home renovations might be right for each situation based on multiple factors.